Question

Net profit shows quick ratio. (State True or False)

Answer 1

False. Hope this answer will help you

Answer 2

Answer:

False

Explanation:

As per the question

Quick ratio:  is the proportion of the quick assets to quick current liabilities

Quick ratio = $\dfrac{A - B}{C - D}$

Where,

A =  Current assets

B = Inventories

C = Current liabilities

D = Bank O D and cash credit

The ratio between  all assets quickly convertible into cash ( this excludes inventory ) all current liabilities.